Financial services are an important aspect of any economy and their strength determines how well an economy functions. A strong financial service sector leads to economic growth and can also help backward regions catch up with developed ones.
Among the most widely known sectors of the financial services industry are banking and investment. The latter includes the activities of money lending and debt management, and the former involves investments and insurance.
Banking – Banks are companies that offer a variety of financial services including savings accounts, loans, and credit cards. These firms earn revenue primarily through interest rates and fees on the accounts that they offer.
Investment – This area of the industry includes banks, brokerage firms, and investment dealers. These firms handle various types of investments, including stocks, bonds, and options.
Insurance – This is a type of financial product that you pay into on a regular basis to protect yourself from certain losses that may occur. It can cover things such as a car, home, or even a person’s life, and is often seen as a safety net to protect against large expenses that are unforeseen.
Asset management – This is an area of the financial services industry that deals with the management of pensions, hedge funds, and other investment assets. This sector of the industry includes banks, brokerage firms, insurance companies, and investment dealers.
The financial services industry has gone through a lot of changes over the past few years. This has been largely due to technology, which has altered the way firms do business. Computer-generated models can analyze markets and create investment strategies more quickly than ever before.